Income Strategies

Income strategies and tips to assist in shaping your financial future.

Earn more, spend less

Earn more, spend less

(Reading time: 2 - 4 minutes)

Sounds easy, but in reality it’s much harder than that.

In the moment, most of us would rather have that $15 lunch special than increase our super contributions by 1%. “Later” doesn’t hold up so well against “now.”

Are you living from pay to pay? Sick of borrowing money from family? Do you own a credit card? Perhaps you’re drowning in debt? Maybe you just want some extra cash for weekend splurging? If you fit-the-bill for any (or all) of these categories, keep reading…

It’s time to get a grip on your financial affairs and rethink your values, particularly those related to money. Stop and ask yourself 'what is truly important in your life?' It’s so easy to get caught up in our lifestyles that we fall out of touch with our values system and subsequently we end up spending money on unnecessary things.

Below are five techniques to help you attain financial freedom and rekindle your values.

1. Clear out your casa.

Assign a weekend to go through your garage, cupboards and wardrobe to find things you can sell online. Create a profile on sites like Gumtree or eBay and list all of your available products. Not only will you earn more money, this exercise will free up room around your home and teach you to be minimalistic.

2. “A penny saved is a penny earned”.

Review your bank statements to sift out all of the random one-off expenses and ongoing, but underutilised direct debits. If you have a gym membership you never use, cancel it – outside is free! If you own a subscription to a magazine or smart phone apps that aren’t providing any value, get rid of them. If you're spending a small fortune at restaurants and bars, make an effort to spend more time at home and away from temptation. You have to be brutal and disciplined when it comes to cutbacks.

3. Change your psych.

Instead of forgoing and giving things up - “savour” them instead. Giving up something to save money can make you feel deprived. That is, unless you shift your way of thinking to start “savouring” instead of “giving up.” Don’t feel you have to change your lifestyle; merely change the frequency of your indulgences. Go to the movies weekly? Try once a month instead. It’s psychologically much easier to tell yourself you’re not giving anything up, you’re just going to savour it more.

4. Overtime.

Ask your boss if you can put in a few extra hours at work each week. If this isn't possible, look for an additional part-time job that will bring you in extra money or sell your products and services online.

5. Compare the Market.

Make sure you're paying as little as possible for your credit cards loans, utilities, insurance, and phone and internet connections. Use price comparison services to find out if you're paying over the odds. If you've been with the same service providers for many years, there'll be a good chance switching could save you money or you might be rewarded with a loyalty discount.


Don't know where to start?

For more help and to take a fresh look at the way you manage your money, speak to your financial adviser at SFP. Or if you don't have an adviser yet, contact us on 02 9328 0876.


General Disclaimer: This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. Please seek personal financial advice prior to acting on this information.